List High or List Low?

That list price won’t work. I know it, likely the agents who listed those properties know it, and the sellers should know it. So why are those listings overpriced?  It’s a calculated decision. And most often, it’s a bad one. When preparing to list a property most folks will say to their agents something along the lines of: ‘Let’s list it at $550,000 and see if we can get it.’ If the agent accepts, he or she and the seller are now ‘chasing the market’. If every comparable property in the area is selling between $400-440,000 the properties listed above that range are chasing after buyers trying to get them to pay attention to them. In that same neighborhood, a comparable property listed at $399,000 is said to be ‘setting the market’. In this values-driven economy, buyers are opting for price over everything else. So the least expensive property is the one that gets the most attention and sets the pace for what everyone else will get. We may not like that lower-priced listings are setting the market. There was a time when the granite-countered-cherry-floored-marble-tiled bungalow set the market. Those days are over. Now, the best house at the lowest price is the one that wins. And if you’re competing with that house at a price more than 10% above market, you will likely not be successful. When listing your house, ask your agent to prepare a market time report and a listing history report on all the listings being used as comps. Look at those reports and make sure your pricing strategy is one that works for you, your propertyandyour market. For more information on how we can help you execute the strategy that meets your goals visit www.carmenandtony.com.